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10/9/2018
1.
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Award: 1.00 point
Exercise 5-1 Inventory ownership LO C1
1. At yearend, Harris Co. had shipped $12,500 of merchandise FOB destination to Harlow Co. Which
company should include the $12,500 of merchandise in transit as part of its yearend inventory?
Harlow Co.
Harris Co.
2. Harris Company has shipped $20,000 of goods to Harlow Co., and Harlow Co. has arranged to sell
the goods for Harris.
a. Identify the consignor.
Harris Co.
Harlow Co.
b. Identify the consignee.
Harris Co.
Harlow Co.
c. Which company should include any unsold goods as part of its inventory?
Harris Co.
Harlow Co.
References
Multiple choice
Difficulty: 1 Easy
Exercise 51
Inventory
ownership LO
C1
Learning Objective:
05C1 Identify the
items making up
merchandise
inventory.
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Exercise 5-2 Inventory costs LO C2
Walberg Associates, antique dealers, purchased the contents of an estate for $39,500. Terms of the
purchase were FOB shipping point, and the cost of transporting the goods to Walberg Associates's
warehouse was $2,200. Walberg Associates insured the shipment at a cost of $350. Prior to putting
the goods up for sale, they cleaned and refurbished them at a cost of $690.
Determine the cost of the inventory acquired from the estate.
Cost of inventory (estate's contents)
Total cost of inventory
$
0
Hints
Hint #1
References
Expanded table Difficulty: 2 Medium
Exercise 52
Learning Objective:
Inventory costs 05C2 Identify the
LO C2
costs of merchandise
inventory.
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10/9/2018
Assignment Print View
Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
Laker Company reported the following January purchases and sales data for its only product.
Date
Jan.
1
Jan. 10
Jan. 20
Jan. 25
Jan. 30
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Units Acquired at Cost
175 units @ $10.00 = $ 1,750
130 units @ $ 9.00 =
1,170
250 units @ $ 8.50 =
2,125
Totals
555 units
Units sold at Retail
$5,045
135 units @
$19.00
140 units @
$19.00
275 units
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 250 are from the January 30 purchase, 5
are from the January 20 purchase, and 25 are from beginning inventory.
References
Section Break
3.
Use the following information for
the Exercises below.
Award: 1.00 point
Exercise 5-3 Perpetual: Inventory costing methods LO P1
Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.
Complete this questions by entering your answers in the below tabs.
Required 1
Required 2
Required 3
Required 4
Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
Specific Identification
Available for Sale
Purchase Date
Activity
Units
Jan. 1
Beginning inventory
175
Jan. 20
Purchase
130
Jan. 30
Purchase
250
Cost of Goods Sold
Unit
Cost
Units
Sold
555
Unit Cost
0
Required 1
Ending Inventory
Ending
Cost Per
Inventory
Unit
Units
COGS
$
0
Required 2
0
Ending
Inventory
Cost
$
0
Hints
Hint #1
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10/9/2018
Assignment Print View
Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
Laker Company reported the following January purchases and sales data for its only product.
Date
Jan.
1
Jan. 10
Jan. 20
Jan. 25
Jan. 30
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Units Acquired at Cost
175 units @ $10.00 = $ 1,750
130 units @ $ 9.00 =
1,170
250 units @ $ 8.50 =
2,125
Totals
555 units
$5,045
Units sold at Retail
135 units @
$19.00
140 units @
$19.00
275 units
The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280
units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from
beginning inventory.
References
Section Break
4.
Use the following
information for the
Exercises below.
Award: 1.00 point
Exercise 5-4 Perpetual: Income effects of inventory methods LO A1
Required:
1. Complete comparative income statements for the month of January for Laker Company for the four
inventory methods. Assume expenses are $1,600, and that the applicable income tax rate is 40%. (Round
your Intermediate calculations to 2 decimal places.)
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LAKER COMPANY
Income Statements
For Month Ended January 31
Specific
Weighted
Identification
Average
FIFO
LIFO
Sales
Cost of goods sold
Gross profit
0
0
0
0
0
0
0
0
Expenses
Income before taxes
Income tax expense
Net income
$
0
$
0
$
0
$
0
2. Which method yields the highest net income?
LIFO
Specific identification
Weighted average
FIFO
3. Does net income using weighted average fall between that using FIFO and LIFO?
Yes
No
4. If costs were rising instead of falling, which method would yield the highest net income?
Specific identification
Weighted average
LIFO
FIFO
Hints
Hint #1
References
Expanded table
Difficulty: 3 Hard
Exercise 54
Perpetual:
Income effects
of inventory
methods LO A1
Learning Objective:
05A1 Analyze the
effects of inventory
methods for both
financial and tax
reporting.
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10/9/2018
Assignment Print View
Use the following information for the Exercises below.
[The following information applies to the questions displayed below.]
Laker Company reported the following January purchases and sales data for its only product.
Date
Jan. 1
Jan. 10
Jan. 20
Jan. 25
Jan. 30
Activities
Beginning inventory
Sales
Purchase
Sales
Purchase
Units Acquired at Cost
215 units @ $14.00 = $ 3,010
160 units @
$13.00 =
2,080
355 units @
$12.00 =
4,260
Totals
730 units
$9,350
Units sold at Retail
165 units @
$23.00
190 units @
$23.00
355 units
rev: 09_15_2017_QC_CS-99723
References
Section Break
5.
Use the following information for
the Exercises below.
Award: 1.00 point
Exercise 5-5A Periodic: Inventory costing LO P3
Required:
The Company uses a periodic inventory system. For specific identification, ending inventory consists of 375 units, where 355 are from the January 30 purchase, 5
are from the January 20 purchase, and 15 are from beginning inventory. Determine the cost assigned to ending inventory and to cost of goods sold using (a)
specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.
Complete this questions by entering your answers in the below tabs.
Specific Id
Weighted
Average
FIFO
LIFO
Determine the cost assigned to ending inventory and to cost of goods sold using specific identification. For specific identification, ending inventory consist
375 units, where 355 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.
a) Specific Identification
Cost of Goods Available for Sale
Cost of Goods Sold
Cost of Goods
Cost per
# of units
# of units
Available for
unit
sold
Sale
Cost per
unit
Ending Inventory
Cost of
Goods Sold
# of units
in ending
inventory
Cost
per unit
Ending
Inventory
Beginning inventory
Purchases:
Jan. 20
Jan. 30
0
Total
$
0
0
Specific Id
$
0
Weighted Average
0
$
0
rev: 09_14_2017_QC_CS99723
Hints
Hint #1
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